Taupo-nui-a-Tia College wins Monetary Policy Challenge

Release date

21 August 2014

The Reserve Bank has announced that
Taupo-nui-a-Tia College is the national winner of the Reserve Bank 2014 Monetary Policy Challenge (MPC).
Takapuna Grammar School from Auckland was placed second and Glenfield College
from Auckland came third.

The MPC is designed to expand senior secondary school economics students'
understanding of monetary policy, and it links to NCEA achievement
standards.

The national final took place at the Reserve Bank in Wellington yesterday and
was strongly contested. The judges were Assistant Governor John McDermott and
two Reserve Bank economists, Amy Wood and Nikki Kergozou.

The judges said that all the presentations were excellent, and the teams all
showed an impressive knowledge of economic principles in justifying their
monetary policy decisions. They were particularly impressed with the
Taupo-nui-a-Tia College team's innovative way of showing how inflationary
pressures accumulate in the economy.

"All the schools coped extremely well with some very challenging
questions and were fantastic at applying their knowledge to current
issues," Dr McDermott said.

Taupo-nui-a-Tia College won $2500 in prize money for their school. The team
will also travel to Wellington to spend Thursday, 11 September 2014 at the
Reserve Bank where they will watch the release of the next Monetary Policy
Statement by Governor Graeme Wheeler, meet with senior decision makers and see
first-hand how economic theory is put into practice.

Takapuna Grammar School won $1500 and Glenfield College won $750 in prize
money for their respective schools. The other competitors in the national final
were Lindisfarne College (Wellington regional winners), Christchurch
Girls' High School (Christchurch regional winners) and James Hargest
College (Lower South Island regional winners).

Just like economists working in the Reserve Bank, each team analyses the
economic conditions facing New Zealand and the outlook for inflation. On the
basis of that analysis, they decide on an appropriate setting for the Official
Cash Rate (the Reserve Bank's interest rate). Each team provides the
reasons for their decision in a written submission and, if selected as a
regional or national finalist, delivers an oral presentation.

"It was really great to see how much study and
preparation teams had put into their entry in the competition, their teamwork,
and their breadth of knowledge about the role of monetary policy and the role of
the Reserve Bank," Dr McDermott said. "We also acknowledge the
efforts of the many teachers who have contributed valuable time and effort to
inspire and guide their students."

The MPC is open to all New Zealand secondary school economics students and
runs annually from May to August.

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